Saudi Arabia’s economy is on track to slow to 1.9% this year after expanding 8.8% last year, the Organisation for Economic Development (OECD) said in its latest forecast.

The kingdom’s gross domestic product (GDP) is also on course to expand to 3.1% next year, while inflation is expected to moderate from 2.5% in 2023 to 2.1% in 2024.

The projections are part of the Paris-body’s latest forecasts for major economies.

The kingdom’s GDP growth for 2023 is ahead of other major countries, including Japan, Australia, France, United Kingdom, Germany and Italy, among others.

Global economic growth will be 3% this year and 2.7% next year, down from 3.3% in 2022.

The latest projections are in line with OECD’s previous forecasts.

“The global economy continues to confront the challenges of elevated inflation, low growth and comparatively weak trade,” said OECD Secretary-General Mathias Cormann.

OECD’s growth forecast for Saudi’s economy this year is lower than IMF’s calculations. The International Monetary Fund (IMF) had forecast Saudi GDP growth to slow to 2.1% this year on the back of oil production cuts.

Saudi’s General Authority for Statistics had confirmed that the kingdom’s economy grew by 1.1% in the second quarter of the year, supported by the increase in non-oil activity.

 (Writing by Cleofe Maceda; editing by Seban Scaria)